Parliamentary Commissioner for the Environment, New Zealand ' Image of New Zealand wind farm ' Image of the Treaty of Waitangi ' Image of New Zealand marine scene '

Ageing pipes and murky waters: urban water system issues for the 21st century

June 2000

Report summary


Report cover

The supply of adequate drinking water and the removal of polluted waters are the two most fundamental needs of towns and cities, and without these services, cities rapidly become uninhabitable. This paper identifies the key social, environmental and economic issues affecting the sustainable management of urban water systems and presents a series of relevant questions to encourage debate


Commissioner's preface

The supply of adequate drinking water, and the removal of polluted waters, are the two most fundamental needs of towns and cities. Without them cities rapidly become uninhabitable, as history records.

The physical designs of our current water systems have their origins in the 19th century; institutional arrangements have evolved throughout the 20th century.

Executive summary

Since 1998 the Parliamentary Commissioner for the Environment has been identifying critical urban water system issues and monitoring progress with the national water services review. Well-maintained water systems are the most critical of the many services that make urban living possible, yet most citizens tend to take them for granted. Improving the sustainability of our cities and towns, and ensuring our 'clean, blue and green image' is a reality, necessitates some major redesign of current infrastructure and organisational models if environmental standards are to be maintained cost-effectively.

Urban water systems

Urban water systems are the natural, modified and built water systems that exist in towns and cities. These systems are interconnected and interact in both positive and negative ways. The functions provided by the built system of water supply, wastewater and stormwater infrastructure are commonly referred to as water services. Around 85% of the population receives water, wastewater and stormwater services from local authorities. Local authority water and wastewater infrastructure is valued at approximately $7.5 billion with around $600 million spent on operational costs each year. It has been estimated that around $5 billion of investment will be required over the next 20 years to upgrade water, wastewater and stormwater infrastructure.

Key challenges

There are a number of key challenges for the management of urban water systems common to all towns and cities. They include environmental, social and economic dimensions but many of the underlying causes are interrelated and overlapping. One of the biggest challenges will be reaching consensus between the various stakeholders on the environmental, social and economic goals and values of urban water systems. Without much more extensive community input, and greater understanding of water management options, improving the sustainability of current systems will be very difficult and painfully slow.

Other major challenges include:

  • inadequate water flows from excessive and inefficient water use;
  • contamination of surface waters and groundwater from uncontrolled or poorly managed stormwater drainage and wastewater disposal;
  • consumers and ratepayers have increasing expectations about the provision and quality of water services but there is often a negative reaction to large rate increases or increased charges to fund required infrastructure;
  • a lack of awareness and understanding of the value of urban water systems and the costs of improving water supplies, and wastewater and stormwater management;
  • poor recreational and bathing water quality, and poor information disclosure;
  • lack of investment and deferred maintenance, in part through incomplete pricing and inadequate financial contributions from new urban developments;
  • institutional and regulatory barriers to improved management; and
  • potential risk of infrastructure failure.

There is a compelling need to develop a clearer understanding of the sustainability implications for urban water systems and to develop pathways towards achieving identified and widely supported goals. Essentially this will mean planning, developing and operating urban water systems in harmony with the natural water cycle and encouraging more efficient resource use. This can be contrasted with the traditional approach to urban water systems with large pipes and treatment plants; a very linear system with few feedback loops and reuse.

It is essential that progress is made with the national water services review. Redesigning the current framework to capitalise on known innovations will inevitably bring a long period of incremental transitions from present to future systems. If the review does not proceed then there will be increased risks of continued variation in management responses and variable environmental, economic and social outcomes. The journey is a long one and immediate action is needed to chart a new course.

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